The Case for Renewing Transatlantic Capitalism

This commonality continues to bind together transatlantic capitalism
in the face of new, shared challenges: the sovereign debt and
banking crises in the euro area, the American financial crises, the
public and private debt overhang and the rise of Chinese state capitalism.
Just as the United States and Europe rebuilt the shattered
western European economy after World War II because it was in
the self-interest of people on both sides of the Atlantic, Americans
and Europeans now need to work together to revive their shared
economic space in the wake of the devastation wrought by the
Great Recession, which is still ongoing in Europe. They need to
cooperate to craft rules of the road, especially for the transatlantic
capital market, to avoid such catastrophes again. And they must
jointly face the competitive challenge posed by China’s growing
weight in the commercial realm, ensuring that it is the norms of
transatlantic capitalism – open competition, transparency, limited
state involvement in the economy, the rule of law – and European
and American regulatory and technological standards that prevail
in the global marketplace.
The EU and the United States have gone separate ways in the aftermath
of the crisis, a result of both slightly differing economic
traditions and the fact that the US still functions at the centre of the
dollar zone that remains central to the world economy. The immediate
post-crisis period has, however, brought both sides of the
Atlantic to a common point of deleveraging and austerity. There is
now a strong rationale for a new effort to merge transatlantic growth
paths to enhance future prospects and avoid future clashes.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s